RtS, comments on your post...
The first two SOX charts support your comments. The PnF chart has reversed into Xs and holds hope. stockcharts.com
>Will the SOX bottom at 250? If not will the bottom be higher or lower?<
250 shows 'support' in '97/98. Oct '98 was even lower. stockcharts.com[e,a]waclyiay[d19960728,20020728][pb30!d20,2!f][vc60][iut!Ub14!Lp14,3,3!Lf!Lk14]&pref=G
Since bpndx - a cousin of SOX - has reversed from the low of 8% and is now in the twenties, I think SOX will stay above 250. Other bp indicators are also near lows. The most important, bpnya, has yet to reverse. If it does, that would be cautiously bullish. If it goes down to 24% another O is added and that would be bearish. Last year's low was around 26%.
The 'overvalued' cry is affecting SOX, even though we know trailing PE is not the way. Manipulation, like GS's, also plays a role. We're swimming with sharks here.
Gottfried |
